No. 38625 (Amendment): Section R277-480-4. Charter School Revolving Account Application and Conditions

(Amendment)

DAR File No.: 38625
Filed: 06/16/2014 04:06:57 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section R277-480-4 is amended to change the conditions under which a revolving loan is calculated so that a charter school can maximize the amount of its loan.

Summary of the rule or change:

The amendments to Section R277-480-4 change the date for calculation of student enrollment from the prior year October 1 enrollment to the most recent October 1 enrollment.

State statutory or constitutional authorization for this rule:

• Subsection 53A-1-401(3)
• Subsection 53A-1a-522(2)(b)

Anticipated cost or savings to:

the state budget:

The amendments provide changes to the conditions in which a loan is calculated which likely will not result in a cost or savings to state government.

local governments:

The amendments provide changes to the conditions under which a revolving loan is calculated which likely will not result in a cost or savings to local government.

small businesses:

The amendments provide changes to the conditions under which a revolving loan is calculated which likely will not result in a cost or savings to small businesses.

persons other than small businesses, businesses, or local governmental entities:

The amendments provide changes to the conditions under which a revolving loan is calculated which likely will not result in a cost or savings to persons other than small businesses, businesses, or local government entities.

Compliance costs for affected persons:

The amendments provide changes to the conditions under which a revolving loan is calculated which likely will not result in any compliance costs for affected persons.

Comments by the department head on the fiscal impact the rule may have on businesses:

I have reviewed this rule and I believe that there is likely no fiscal impact on businesses.

Martell Menlove, State Superintendent

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Education
Administration
250 E 500 S
SALT LAKE CITY, UT 84111-3272

Direct questions regarding this rule to:

• Carol Lear at the above address, by phone at 801-538-7835, by FAX at 801-538-7768, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

07/31/2014

This rule may become effective on:

08/07/2014

Authorized by:

Carol Lear, Director, School Law and Legislation

RULE TEXT

R277. Education, Administration.

R277-480. Charter School Revolving Account.

R277-480-4. Charter School Revolving Account Application and Conditions.

A. The Charter School Revolving Account Committee shall develop and the USOE shall make available a loan application that includes criteria designated under Section 53A-1a-522, including urgent facility need criteria.

B. The Charter School Revolving Account Committee shall include other criteria or information from loan applicants that the committee or the Board determines to be necessary and helpful, including considerations of Section 53A-1a-522(5), in making final recommendations to the Superintendent, the State Charter School Board and the Board.

C. The Charter School Revolving Account Committee shall accept [A]applications for loans [shall be accepted ]on an ongoing basis, subject to eligibility criteria and availability of funds.

(1) To apply for a loan, a charter school shall submit the information requested on the Board's most current loan application form together with the requested supporting documentation.

(2) The application shall include a resolution from the governing board of the charter school that the governing board, at a minimum:

(a) agrees to enter into the loan as provided in the application materials;

(b) agrees to the interest established by the Charter School Revolving Account Committee and repayment schedule of the loan designated by the Charter School Revolving Account Committee and the Board;

(c) agrees that loan funds shall only be used consistent with the purposes of Section 53A-1a-522 and the purpose of the approved charter;

(d) agrees to any and all inspections, audits or financial reviews ordered by the Charter School Revolving Account Committee or the Board; and

(e) understands that repayment, including interest, shall be deducted automatically from the charter school's monthly fund transfers, as appropriate.

D. The Charter School Revolving Account Committee shall establish terms and conditions for loan repayment, consistent with Section 53A-1a-522. Terms shall include:

(1) A tiered schedule of loan fund distribution:

(a) 50 percent (up to $150,000) disbursed no more than 12 months prior to August 15 in the school's first year of operations;

(b) 25 percent (up to $75,000) disbursed no more than six months prior to August 15 in the school's first year of operation;

(c) the balance of loan funds disbursed no more than three months prior to August 15 in the school's first year of operations.

(2) The loan amount to a charter school board awarded under Section 53A-1a-522 shall not exceed:

(a) $1,000 per pupil based on [prior year]the most recent October 1 enrollment count for operational schools; or

(b) $1,000 per pupil based on approved enrollment capacity of the first year of operation for pre-operational schools; or

(c) $300,000 of the total of all current loan awards by the Board to a charter school board.

 

KEY: charter schools, revolving account

Date of Enactment or Last Substantive Amendment: [December 27, 2011]2014

Notice of Continuation: June 10, 2014

Authorizing, and Implemented or Interpreted Law: Art X, Sec 3; 53A-1a-522(2)(b); 53A-1-401(3)

 

---